Cedar in JV with RioCan for $53M Shopping Center Deal
- May 12, 2010
May 12, 2010
By Allison Landa, News Editor
Cedar Shopping Centers and RioCan Real Estate Investment Trust have entered a joint venture to purchase Exeter Commons, a 361,000-square-foot shopping center on 37 acres in Exeter Township, Pa., for $53 million. The split is 20 percent Cedar and 80 percent RioCan. The sale is a boon for the recession-battered retail market, which has taken a beating due to severely diminished consumer spending.
Completed in 2009, the property is anchored by a 171,000-square-foot Lowe’s Home Improvement Center and an 82,000-square foot Giant Food Stores Supermarket. The leases on both tenants extend to 2029. Other anchors include Staples and Petco. The property is 98 percent leased and shadow-anchored by a 133,000-square-foot Target store that was also completed in 2009.
The companies said that the property will be delivered free and clear at the time of closing, with property-specific financing at an estimated 60 percent of the purchase price. Cedar will act as property manager.
Headquartered in Port Washington, N.Y., Cedar currently owns and operates approximately 13 million square feet of gross leasable area at 119 shopping-center properties, of which more than 75 percent are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years. RioCan is Canada’s largest REIT, with ownership interest in more than 200 retail properties. The company invests primarily in supermarket and junior department-store anchored shopping centers.